US: Annual Core PCE Price Index edges lower to 1.4% in February vs. 1.5% expected

• Core PCE inflation came in slightly lower than expected in February.
• US Dollar Index continues to move sideways below 93.00.

The Personal Consumption Expenditures (PCE) Price Index in February edged lower to 0.2% on a monthly basis and came in lower than the market expectation of 0.5%, the data published by the US Bureau of Economic Analysis showed on Friday. On a yearly basis, the PCE Price Index rose to 1.6% as expected.

More importantly, the annual Core PCE Price Index, which excludes volatile energy and food prices, arrived at 1.4% and fell short of analysts' estimate of 1.5%.

Market reaction

The US Dollar Index showed no immediate reaction to these figures and was last seen posting small daily losses at 92.80.